Firms Sometimes Acquire Assets by Exchanging an Asset Other Than

question 50

True/False

Firms sometimes acquire assets by exchanging an asset other than cash or by issuing common stock.In these cases, acquisition cost is either the fair value of the consideration given or the fair value of the asset received, depending on which value the firms can more reliably measure.

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Definitions:

Data Saved

Refers to information that has been securely stored on a computer or storage media for future use or retrieval.

CD-R

Short for Compact Disc-Recordable, a type of digital storage medium that allows users to record data once, but prevents erasing and re-recording of data.

Computer Burner

A device, typically part of a computer, used for recording data onto optical discs such as CDs, DVDs, or Blu-ray discs.

USB Flash Drive

A portable storage device using flash memory for storing data, easily connected to computers and other devices via USB ports.